PG&E concludes $1.75 billion bond sale

PG&E Corp (NYSE:PCG) and its subsidiary Pacific Gas and Electric Company have successfully concluded the sale of $1.75 billion in mortgage bonds, as stated in a recent SEC filing. The sale, which took place on Thursday, involved two types of bonds: $1 billion in floating-rate bonds due in 2025 and $750 million in 5.900% bonds due in 2054.

The sale was executed under an underwriting agreement dated September 3, 2024, with Barclays Capital Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., and Wells Fargo Securities, LLC acting as the primary underwriters. The terms of the sale, including the interest rates and maturity dates, are detailed in the exhibits attached to the SEC filing.

The bonds are secured by a twenty-fifth supplemental indenture between Pacific Gas and Electric Company and The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., serving as the trustee. This legal agreement ensures the bonds are backed by the company's assets, providing security for bondholders.

The completion of the bond sale provides PG&E with significant capital, which might be used for various corporate purposes, including infrastructure investments, debt refinancing, or other operational needs. The legal opinion regarding the issuance was provided by Hunton Andrews Kurth LLP, confirming the lawful execution of the bond sale.

This financial move comes as PG&E continues to navigate through the challenges of providing energy services in California, a state prone to wildfires and other natural disasters. The company's ability to raise capital through bond sales is a critical component of its financial strategy and overall stability.

In other recent news, PG&E Corp has successfully completed a $1.75 billion bond sale, bolstering its financial structure. The company also issued $1.42 billion in Senior Secured Recovery Bonds, Series 2024-A, through its subsidiary, PG&E Recovery Funding LLC.

In the recent earnings report, PG&E reported a profitable second quarter, surpassing analysts' estimates due to increased service rates. The company experienced a 15.7% increase in its electric segment's revenue. However, the 2024 GAAP earnings forecast was lowered due to unrecoverable interest expenses and wildfire damage liabilities.

Analyst firms have shown positive outlooks on PG&E, with JPMorgan upgrading its stock from Neutral to Overweight, and both UBS and Mizuho Securities maintaining a Buy rating. These changes reflect the ongoing financial restructuring and risk management strategies of PG&E Corp.

The company is committed to no new equity and has a focus on safety and affordability, with a plan to underground 250 miles of power lines this year as part of its wildfire risk mitigation efforts. These are some of the recent developments in the company.

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